Virgin Blue sees profit soar 47 per cent

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Budget airline Virgin Blue today posted a $158.52 million net profit for the year to March 31, 47 per cent above the same period a year earlier.

The airline, which became publicly listed in December, also said it planned to add five new aircraft to its fleet this year, while keeping costs down.

Virgin said the domestic Australian market continued to demonstrate strong growth, but it was also exploring other opportunities in pursuit of long-term growth.

"With a population of not much more than 25 million, Australia and the Pacific region does not have the market potential offered by the North American, European and Asian markets," Virgin chief executive Brett Godfrey said.

"However, we believe significant growth opportunities exist for us in various aviation-related areas both in Australia and around the region."

Virgin said revenue lifted 49 per cent to $1.36 billion for the year, while earnings before interest, tax, depreciation, amortisation and aircraft rentals grew 43 per cent to $409 million.

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The company did not declare a dividend, as foreshadowed in its prospectus.

Virgin said its capacity, measured in "available seat kilometres" (ASKs), increased 55 per cent during the year as 15 new aircraft were added to the fleet.

Its 44 aircraft now flew 43 routes to 21 destinations. As at March 2004, Virgin said, it had over 33 per cent of the Australian domestic market with market share continuing to exceed capacity share.

Total costs for the year were $1.14 billion, up 49 per cent.

Fuel prices increased by more than 28 per cent during the year, although the company was substantially hedged for the financial year at below $US30 per barrel.

In line with other carriers around the world, Virgin Blue has announced a fuel surcharge to cover the increased cost to the business from the rising fuel prices.